All Fixed Income articles – Page 26
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White papersA Soft Landing Is Still a Landing
What do slowing growth, lower inflation, tight credit spreads and a steepening yield curve mean for our fixed income views for the rest of the year? If the big story of the moment in equities is the epic rotation out of mega-cap stocks and into smaller companies, the equivalent in fixed income is the ongoing, sharp unwind of a record-breaking U.S. yield curve inversion.
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White papersHigh Yield: A Continued Bright Spot
Compelling income opportunities supported by favorable fundamental and technical conditions continue to attract investors to high yield bonds and loans.
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PodcastEM Debt: The Improving Risk/Reward Dynamics
Dr. Ricardo Adrogué joins the podcast to discuss why risks including those related to inflation, interest rates and EM elections are increasingly behind us, setting the stage for a possible resurgence in investor appetite for EM Debt.
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White papersCLOs: The Positive Streak Continues
While CLOs remain well-positioned for the months ahead, we continue to see benefits to staying up in both quality and liquidity.
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White papersThe case for bonds (as rates inch towards normalisation)
With the Fed expected to begin its easing cycle later this year, bond markets appear poised to generate income to a degree not seen since before the 2008-09 financial crisis.
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White papersBiden’s exit from the presidential race opens a phase of uncertainty
Biden exit from the race: Current US President Joe Biden announced on Sunday that he will not seek re-election and endorsed Vice President Kamala Harris as the Democratic nominee. Senior members of the Democratic party have expressed their support for Kamala Harris. Donations for the campaign have begun to rise after Biden’s decision.
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White papersFixed Income Perspectives Q3 2024
Quarterly macro and market insights from Capital Group’s fixed income team
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White papersEvaluating risk and reward in an ever-changing world
Private markets have grown exponentially since the Global Financial Crisis, and the growth story is far from over. We explore the risks and rewards of this often complex world and why expertise is crucial in achieving tangible results.
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VideoMid-year outlook video – Overweight equities; locking in today’s yields
Equities should see further good returns in the second half of 2024, justifying a continuation of our overweight stance, particularly in the US and for NASDAQ stocks. In Europe, small capitalisation stocks should benefit from the ongoing recovery fuelling consumer demand.
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White papersPrivate Credit Outlook: The Heat is On
Private market growth in recent years has been remarkable. We think there’s more to come.
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White papersMoving beyond cash
With the highest starting yields in 15 years, many fixed income sectors already produce more income than cash. And these sectors offer the opportunity for price appreciation once the U.S. Federal Reserve starts cutting rates, while the yield on cash will simply decline. We advocate a multisector approach that takes selective risk in credit sectors. Active management remains critical, as credit spreads are likely to widen in the coming months.
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White papersFive-year investment outlook
Our analysis shows the dispersion of returns across domestic equity and bond markets will decline over the next five years. This suggests investors should consider investing across sectoral lines and allocate more of their capital to corporate bonds.
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White papersDispelling the myths around emerging market debt
Things in emerging markets are not always what they seem. In December 2023, Argentina elected as president Javier Milei, a rabble-rousing populist fond of brandishing a chainsaw on the campaign trail. Milei had a radical agenda, including dollarising the economy and abolishing the central bank – just the kind of policies that alarm investors.
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White papersThe potential power of income to deliver long-term returns
After years in the wilderness, equity income is now arguably competing on a much more level playing field than it was in the past decade.
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White papersEMEA Investment grade outlook, H2 2024
Inflation is finally coming down, central banks are poised to cut rates, and credit spreads have withstood volatility in government bonds. So where do we see things going from here?
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White papersWhy we’ve said ‘auf Wiedersehen’ to Deutsche Bank
A great German thinker once said: “We rarely find people who achieve great things without first going astray”
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VideoInvestment grade: attractive yields with lower risk profile
The asset class is in a fundamentally good place, with the past few years seeing index yields rise to 5.5% – competing quite well with asset classes such as equities.
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White papersPolicy and Politics
The first-quarter inflation bump is behind us, but the risks of a monetary policy error and electoral shocks have risen. While we believe the fundamental economic outlook for the next 12 – 18 months remains positive for risky assets, the potential for monetary policy errors and election-related volatility overshadows the coming months. These risks prevent the AAC from taking a more overweight view on risky assets, and keep us focused on quality assets and portfolio balance.
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White papersFinding the right blend: Optimising asset allocation in liquidity pools
In the second part of our new article series on liquidity optimisation, Alastair Sewell investigates how investors can find the right mix of assets for their liquidity pools.
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White papersUS high yield: Broader financing options soften impact of higher rates
Heading into 2023, the consensus narrative appeared set. The Federal Reserve had embarked on an aggressive interest rate hiking cycle to combat spiralling inflation. A US recession was expected to follow, as household excess savings built up during the pandemic were exhausted and corporate borrowing conditions tightened dramatically after the benign post-global financial crisis era of low interest rates.
